I remember hearing that Europe doesn't use drywall nearly as much. A benefit of drywall is cost and repairability, but is basically glorified paper, yes.

The benefit of stick frame houses is that they can be built quickly, comparatively cheaply, and actually perform much better than other types in hurricane and tornados. The US also has plenty of domestic wood production, so it's the cheapest material to build with. During the housing boom and suburban sprawl of the 50s (where modern American culture started), where everyone wanted their own house and plot of land in rhe "safe suburbs," these were all desirable.

As for the "why don't you build out of brick and stone," it's not like someone would be better off with a stone house in the event of a natural disaster or fire. Even if the structure was still standing, the damage to the foundation would condemn the house under US building code. And now not only does your insurance have to pay to build a new house, it has to pay to have the old one tore down.

Where does this come from. All Euro houses made out of harden steel and concrete?